New York Attorney General Letitia James today secured more than $3.2 million from eight Nissan dealerships in New York City, the Hudson Valley, and on Long Island – Action Nissan, Bay Ridge Nissan, Legend Nissan, Garden City Nissan, Huntington Nissan, Rockaway Nissan, Smithtown Nissan, and Teddy Nissan – for overcharging more than 1,700 New Yorkers who wanted to purchase their leased vehicles at the end of their lease term. An investigation by the Office of the Attorney General (OAG) found that these dealerships added junk fees or falsified the price of leased vehicles that customers wanted to buy when their lease ended, forcing them to pay higher costs. As a result of OAG’s investigation, eight dealerships will pay penalties for overcharging on end-of-lease buyouts and pay full restitution to more than 1,700 consumers who paid more for their vehicles than they were promised. Attorney General James has now stopped deceptive practices at 15 Nissan dealerships and recovered more than $1 million in penalties and $4.5 million in restitution for more than 2,800 New Yorkers.
“Buying a car is a major financial decision, and no one should have to worry about dealers using illegal junk fees to drive up the price,” said Attorney General James. “These car dealers misled their customers with bogus fees and other costs to cheat them out of their hard-earned money. My office’s investigation will put money back in the pockets of defrauded New Yorkers and require these dealers to steer clear of violating our laws and deceiving consumers.”
The OAG opened an investigation into Nissan dealerships after consumers reported they were being overcharged and given inaccurate receipts for end-of-lease buyouts after the onset of the COVID-19 pandemic. The investigation found that the consumers leased their Nissan cars under an agreement that gave them the option to purchase the vehicle for a set amount after the lease term ended. However, when they returned to the dealerships to buy their car when their leases were up, the dealerships substantially overcharged them. The dealers either added miscellaneous “dealership fees” or “administrative fees,” or inflated the vehicle’s price on the invoice given to the consumer…